With the circulation of the Delta variant, many parts of Australia are now under lockdown putting increasing strain on small and large businesses alike. Unlike the previous nationalised COVID-19 support provided at the beginning of last year, this time, the financial support for businesses are fragmented and entirely depends on the State or Territory in which they operate.
Businesses that have previously received funding under the Business Costs Assistance Program Round Two or the Business Costs Assistance Program Round Two July Extension will be eligible to receive an additional $5,600 ($2,800 per week) to cover the costs in relation to the restrictions. Small to medium businesses that have experienced at least a 70% reduction in turnover as a result of the COVID-19 restrictions and are ineligible for other Victorian government business grants will be able to apply to receive grants of $14,000.
There are also other specific programs for licensed hospitality venues, live performance event organisers, alpine businesses, manufacturing, agriculture, and regional and rural investments. Commercial tenants will be also offered rental relief and be protected from evictions. While landlords will be provided land tax relief of up to 25% and in cases of acute hardship, may be eligible for payments as a part of a $20m hardship fund.
Queensland businesses that have experienced a decline in turnover of 30% or more will be able to receive: $1,000 one-off grant to non-employing sole traders; payroll-based tiered support for all other businesses: SMEs with payrolls of less than $1.3m may be eligible to receive a one-off grant of $5,000. Medium businesses with a payroll between $1.3m and $10m may be able to receive a one-off grant of $10,000. Large sized tourism and hospitality focused businesses with a payroll of greater than $10m may be able to receive a one-off grant of $25,000.
The business package for South Australia include cash grants of $3,000 for employing businesses and $1,000 for non-employing businesses that have experienced a decline in turnover of 30% or more over a 2-week period as a result of COVID-19 restrictions introduced from 28 July 2021. Eligible businesses in the CBD may also be able to receive an additional grant of $1,000. Organiser of major events that were cancelled, or suffered a significant financial loss will be able to get a grant of up to $25,000.
Similar to SA, businesses in the ACT will receive cash grants of $3,000 for employing businesses and $1,000 for non-employing businesses, however, the 30% reduction in turnover will be measured from 13 August to 20 August 2021. The ACT government will also fund a small business hardship scheme where eligible ACT businesses can apply for credits (eg payroll tax, utilities etc) of up to $10,000 per ABN.
Tasmania has announced a specific package mainly targeted at businesses operating in tourism, hospitality, arts and events, seafood, and transport sectors. Between $2,000 and $10,000 will be available to eligible businesses that have suffered a 30% decline in their turnover.
In addition to the previously announced business support payments, rental relief for eligible tenants impacted by COVID-19 will also be implemented along with a hardship fund of $40m for small commercial or retail landlords to provide monthly grants of up to $3,000.
Speak to one of our accountants today if you have any questions or need assistance with any COVID 19 Government support grants or programs.